USD gained yesterday amidst confusion regarding the US-Sino trade war issue. The confusion was provided by statements of US officials, as no clear path was given for new US regulations regarding acquisitions of US high tech companies by foreign investors. However, the opinion that some kind of control over foreign investments in the US will be imposed, seems almost certain. The USD seems to be taking advantage of the confusion and should there be negative headlines we could see volatility rising.
EUR/USD dropped yesterday, breaking the 1.1640 support line and during today’s Asian session, tested the 1.1550 support line. Technically the pair seems to be forming a downward trend line, since Monday. The downward trend-line was tested on Tuesday and today during the Asian session the RSI indicator touched the reading of 30, in the 4 hour chart. We could see the pair stabilizing somewhat and continue in a bearish market. Please bear in mind that the pair may prove sensitive to today’s financial releases, especially relating to the EUR as well as any fundamentals deriving from the EU summit that begins today. Should the pair continue to be under selling interest we could see it breaking the 1.1550 support line and aim for the 1.1470 support barrier. Should it find extensive buying orders along its path, we could see it aiming if not breaking the 1.1640 resistance level.